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While we are relying more and more on our computers to store images from digital cameras, home movie files and music recordings, most of us are failing to prepare for a disaster, according to BT.

The company recently asked 800 people if they took any precautions against the theft of their PC or a major hardware or software failure. Sixty per cent admitted that they had no backup plan. In many cases users don't even have insurance to cover the loss of valuable files.

Computing Which? magazine recently surveyed 46 insurance companies to find out which included cover

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for the loss of digital content. It discovered that less than half currently recognise the importance and value of computer files. While insurance companies are making a move in the right direction, with some already providing cover for downloaded music such as files from the iTunes service, things become more complicated when personal files are involved.

BT's Ciaran Astin told Computer Shopper that "one-third of the people we spoke to who take no backup precautions have already lost photos. These can't be replaced like music tracks from iTunes." Currently there is no sensible alternative to backing up files, but this is an onerous task that most people ignore until it is too late. "People don't want to think about the more boring side of using a PC, taking precautions and doing backups," said Astin. "And those who have done a backup may have done it a long time ago."

BT's solution is an online backup service called BT Digital Vault. A free Basic version provides 1GB of space, while a Plus service allows for 20GB of files and includes an automatic backup utility. This costs £4.99 per month.